Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Nike, inc.

  • Introduction
  • History
  • Acquisition Timelines
  • Competitors
  • Overview of SCM and Manufacturing
  • SC Processes
  • SCM Stratigies
  • Nike's ERP Implementation
  • Controversies of Nike Inc.
  • Nike in Pakistan
  • Creating Value to meet Customer Need
  • Logistics of Nike Inc.
  • Corporate Social Responsibility
  • Conclusion

Creating Value to meet customers needs

Thank you!

Questions?

Quality: Quality products by correct and secure fitting.

Flexibility: Products for changing requirements of different Sports.

Delivery: Nike uses Fed Ex or UPS to deliver packages.

Supply Chain Processes

Overview of SCM & Mfg.

Nike Product Development

Lean Manufacturing

Nike’s Manufacturing flow management:

Organizations like Nike, no longer produce goods but instead outsource all the production functions to partners located overseas and particularly in China.

Lean manufacturing is a business

system and continuous improvement philosophy that aims to deliver the

highest-quality product while eliminating waste, including lost time and material

  • Getting into market takes 15-18 months
  • Design to Final distribution
  • Projections from merchandisers as well as Nike are also required so that the production volumes are established.
  • Market life of Nikes shoe between three to six months
  • before the products can be replaced by other models.

Outsourcing:

Disadvantages

Outsourcing:

Advantages

Disadvantage of outsourcing to

the organizations is that the organizations normally experience longer lead times for delivery

  • Ability and feasibility to concentrate on the other crucial business process
  • Reduced Operational and Recruitment costs
  • Risk-sharing
  • Its manufacturing network consists of over 669 factories in 43 countries. Each product moves from 57 distribution centres.
  • Nike owns No factory
  • All manufacturing is outsourced to third party

Nike supply chain strategy

Competitors of Nike Inc.

Role of Information system

Relationship with partners

Nike has integrated all its information

with supply chain management as well as

customer relationship management been

integrated into a single shared platform.

Practices followed by Nike to maintain Strong relationship with supplier are

  • Sends Research and Development staff to various production factories to ensure smooth production and to avoid miscommunication
  • Nike also encourages the manufacturing firms to be involved in various product developments

Market Share

Acquisition Timeline

Competitors

  • Addidas
  • Reebok
  • Puma
  • ASICS

Outsourcing As the key procurement strategy

Demand management

Nike outsources majority of its manufacturing

function to overseas factories. The strategy to

outsource was implemented once Nike’s management team established that they could get Nike shoes

produced in Japan for lower costs than they were

paying for in the United States.

Nike manages demand for its products by use of futures program that requires retailers who stock Nike’s products to order 80% of their inventory six months in advance in order to be guaranteed delivery

Disadvantages of Nike Supply chain strategy

1998

History

1988

2008

2003

2007

2013

2008

2002

2004

1994

ERP

No control of the inventory since it has too many suppliers

Low wages and sweat shop conditions

  • In the year 1963 Philip Knight reached out to an athletic shoe company in japan called the Onithsuka Tiger Co, because he strongly believed in the quality in the running shoes that were manufactured there.
  • Knight set up a plan to gradually introduce some of the Onitsuka Tiger company's products to US.
  • In 1964, Knight started a new setup in partnership with his former coach Bowerman in US.
  • Initially they named it as Blue Ribbon Sports and operated as a distributor for Japanese shoe maker Onitsuka Tiger

To do Business long ago we use:

Calculators

Typing Machines

Which covers lot of space and increases workflow

Nike-ERP

Conclusion & Recommendation

Nike implements ERP Company:

  • I2 Technologies (Software Firm)
  • Budget= $400 million
  • Completion Date: end of the year 2000

This project ultimately proved to be a big disaster for the Nike’s operations.

  • Evaluating pros and cons of any project before implementing is important.
  • A pilot project can be turn around the fate of any business if handled correctly. 

Problem

Nike Chairman Phillip Knight is quoted as saying,

"This is what we get for our $400 million?“

There were huge inventory problems and overdue deliveries.

Affected the Nike reputation as an innovative user of technology.

Decrease in share prices.

Reasons of Failure

Nike needed the customization of the software to be done soon, so the reprogramming was done in a hurry. The system was able to run but with bugs, causing errors.

“Dear Customer, you have to call the warehouse”

Proverb by finance dept. employee

ERP Software

ERP attempts to integrates all departments and function across a company onto a single computer system that can serve all departments particular needs

Introduction

  • Well known American brand for the apparels and athletic shoes
  • Est. in 1964
  • Headquarters in Beaverton, Oregon
  • Founder – Philp Night and Bowerman

Learn more about creating dynamic, engaging presentations with Prezi